Skip to main content

tv   Mad Money  CNBC  October 3, 2012 6:00pm-7:00pm EDT

6:00 pm
nat gas. >> valley short. >> health care xlv. >> murphy oil. >> we will i'm jim cramer. welcome to my world. >> you need to get in the game. >> firms are going to go out of business, and he's nuts. they're nuts. they know nothing. >> i always like to say there's a bull market somewhere. >> "mad money," you can't afford to miss it. hey, i'm cramer. welcome to "mad money." welcome to cramerica. other people want to make friends. i'm just trying to save you money. my job isn't just to entertain but to educate and teach you. call me at 1-800-743-cnbc. what would happen if a presidential contender ran on a platform that included as essential ten that he wanted stocks to go higher? what would happen if either presidential candidate came out
6:01 pm
and said, i think the stock market should break out to all-time highs and buy! i'm going to do my best to get it there. that's something to ponder on the night of the first debate n a day where the averages couldn't punch their way to be higher. dow gaining 12 points. s&p climbing .36%. neither candidate has articulated such a view. but let's pretend for a moment that i was up there representing the cramerican higher stock price party. what would be my eight-point plan to get us to all-time highs? and why the heck do i think it's so important that the president should even have a plan to send stocks higher? isn't that somehow anti-free capitalist or anteamerican? let's start with the importance of stocks in the firmament.
6:02 pm
the economy is so darn lousy, we don't have much longer -- at the same time the fed wants interest rates down so the economy can hopefully catch fire. we all know from the boss, bruce springsteen, you can't start a fire without a spark. unfortunately, those low rates mean you can't earn squat on bonds either. like it or not, you need to own stocks that can give you a decent return. the unemployed have a hard time saving, no kidding, the fact is that 90 million american households save with stocks in one form or another. it makes a ton of sense when you think about it. how do we get sustainable higher stock prices? let me give you my eight-point plan. point number one, we have to eliminate the tax on dividends entirely.
6:03 pm
if they're tax-free, people will buy them. i trust the balance sheets of corporate america far more than i trust the government's balance sheet. this is hardly a reckless position and would encourage companies to reward shareholders by issuing and raising dividends. i would actually raise the tax on capital gains. why? you get gains when you sell stocks. i don't want people to sell stocks. i want them to own stocks, not sell them. plus if you raised the tax on capital gains, the company that do buybacks would continue to do them, continue to waste the shareholders' money like they do now. put the money in the owners' pockets, not the sellers' pockets, by encouraging saving, not flipping. point number two, we have to clean up these markets. clean up the markets and encourage people on the sidelines to come back in. clean up the stables, like hercules. i would do that by appointing preek bharara as attorney general of the united states of america and have him go after
6:04 pm
all the insider traders. at the same time, presidential candidate interested in higher stock prices should vow to bring back arthur leavitt. should be rolled back tomorrow. third, i would say from the first day in office, i demand that all federal vehicles be retrofits to run on natural gas engines to clean up the skies and hire hundreds of thousands of americans to build up the infrastructure to handle the federal vehicles. that would force the hand of the trucking companies to switch from dirty, expensive imported diesel and cause gasoline to go down in price for all of us. we need to start using the natural gas in this country. that would let us cut defense spending. we would no longer need to spend
6:05 pm
hundreds of billions of dollars supporting other regimes. fourth, i would have the federal government take advantage of the low interest rate environment and issue $500 million in 30-year bonds to fix the nation's infrastructure. fifth, i would slap tariffs on goods made by countries. that would stop the endless parade of jobs migrating from our country to other countries. they have a ridiculous competitive advantage over us. six, i would insist there be a course in high school called money where kids could learn what money is, how to save, how to invest. people need education about the stock market. perhaps to find their own
6:06 pm
therapeutics. seventh, i would appoint a steven jobs memorial competitiveness czar to figure out how our businesses could be made more speft and find out what they need. not government handouts but trying to get educated engineers to help these companies. i would reappoint ben bernanke as chairman of the federal reserve. if it weren't for him, he would never have gotten out of the great depression to begin with. without bernanke, we have nationalized the banks and be stuck with unemployment over 10%. here's the bottom line. nobody asked me. i'm not running. i'm not part of any debate. but i stand for higher stock prices for all. if you elect me,ly put through my plan to switch to clean
6:07 pm
burning natural gases, lower taxes on dividend, educate the masses on money, clean up the skies, rebuild our infrastructure and reappoint bernanke to give liberty, justice and higher stock prices for all. that's a platform i could vote for, if only obama or romney would embrace it. lawrence in texas, lawrence? >> caller: jim, how are you doing? i have a question for you today regarding rpm. the earning report came out today. long or short in the stock? >> short that, you have to short that plentiful dividend. i never recommend that idea. you don't want to do that, boss. i was going to recommend this and then i felt that the upside was very, very limited. good numbers. i should have done it. i really did kick myself at this one. i thought if i recommended it, the stock would go up too much. ron in louisiana.
6:08 pm
ron? >> caller: jim. i've got to thank you. you're the best. i've been investing for 55 years and didn't make money until the last five. guess why? jim cramer. >> thank you. thank you. >> caller: thank you. jim, my question to you is will tim geithner's message to aig affect the long-term outlook? and if so, up or down? >> i would not worry about tim geithner when it comes to aig. just worry about mr. benmosche and what he's doing. carolyn in florida. carolyn? >> caller: hi, this is carolyn from sunny miami beach. >> stayed at the "w" last time. too swank for me. the guy next door to me didn't go to bed until 3:30 a.m. that's when i get up! go ahead. >> caller: i'd like to know, i
6:09 pm
really love sea drill. >> sea drill? gun slinger, are you? >> caller: i think it's great. what do you think now that we have a new ceo? and why is this stock doing so great as far as dividends at 11%? >> the group's very, very under pressure right now. stephanie link, you see her a lot of times on the shows, we were just saying, these drillers, i can't take it. i'm not going to ib flikt a driller on you right now. although if you wanted to own one, you should be in schlumberger. you can't start a fire without a spark. liberty, justice and higher stock prices for all. if i were running, you'd have my eight-point plan. if only the candidates would adopt maybe one of them? "mad money" will be right back. coming up, defining moment? this skyrocketing 200% today
6:10 pm
after unveiling data that suggests a big breakthrough in the fight against muscular dystrophy. but will this astonishing ascent continue? cramer's exclusive with the ceo is next. and later, vf corp is behind brands such as north face, timberland and nautical. could its stock be the present your portfolio needs or will high unemployment and a crimped consumer have it cool off? don't miss cramer's exclusive with the ceo just ahead, all coming up on "mad money." >> announcer: don't miss a second of "mad money." follow @jimcramer on twitter. have a question? tweet cramer, #madtweets. send jim an e-mail to or give us a call at 1-800-743-cnbc. miss something? head to
6:11 pm
i don't spend money on gasoline. i am probably going to the gas station about once a month. last time i was at a gas station was about...i would say... two months ago. i very rarely put gas in my chevy volt. i go to the gas station such a small amount that i forget how to put gas in my car. [ male announcer ] and it's not just these owners giving the volt high praise. volt received the j.d. power and associates appeal award two years in a row. ♪ appeal award two years in a row. customer erin swenson bought so, i'm happy. today. sales go up... i'm happy. it went out today... i'm happy. what if she's not home?
6:12 pm
(together) she won't be happy. use ups! she can get a text alert, reroute... even reschedule her package. it's ups my choice. are you happy? i'm happy. i'm happy. i'm happy. i'm happy. i'm happy. happy. happy. happy. happy. (together) happy. i love logistics.
6:13 pm
ends columbus day. inventory clearance sale get 3 years interest-free financing on tempur-pedic. save 10%, 20%, even 35% on a huge selection of simmons and sealy clearance mattresses. even get free delivery! don't miss 3 years interest-free financing on tempur-pedic. the inventory clearance sale ends monday. superior service, best selection, lowest price, guaranteed. ♪ sleep train ♪ your ticket to a better night's sleep ♪
6:14 pm
if you ever wonder why i'm always encouraging you to speculate here on "mad money" even though just about every other so-called expert in the business says to stay away from these high-risk, high-reward stocks, take one look at sarepta therapeutics. srpt. this is a tiny little biotech company that i endorsed for speculation in the "lightning round" back on september 21st. it was trading at $14.47. and today, sarepta shot into the stratosphere, rallying to nearly $30 for a 200% gain in a single session. two weeks ago, it was a $14 stock. today, nearly a $45 stock. i don't want you to chase it because the easy money has been made. but learn from it. and maybe it pulls back. how exactly does the stock nearly triple in one day? first of all, sarepta is your classic orphan drug biotech company. the company's been developing a drug for a rare genetic disease with no effective treatment
6:15 pm
that's a form of muscular dystrophy. patients are in wheelchairs by their teens and it's fatal. but the disease only affects about 8,000 people in the united states. and the drug is only meant will be effective on about 13% of the patients. that's what makes this an orphan drug. once these orphan drugs hit the market, the companies can charge hundreds of thousands of dollars a year for a course of treatment. it's not doing anything bad to the system. but first the drug needs to be approved. in order to do that, you need to get good data. today, sarepta came out with phase 2 data on the drug. it was supposed to slow or halt the progress of the disease. but in the data we got today, sarepta's drug didn't nearly halt the progress, it led to improvement in patients' ability to walk, not just slowered deterioration. these results were better than
6:16 pm
the most bullish of the bulls could have hoped for. the drug has to be approved by the fda. but after this data, it's on an accelerated track for approval. the biggest move i've ever seen in a day. i think this story's highly educational. let's take a closer look with chris garabedian, the president and ceo of sarepta therapeutics. i am thrilled to have mr. garabedian. welcome to "mad money," sir. >> thank you, jim. it's great to be here. >> i've been investing for 31 years. i've never seen a move this large in a single day. and that is because i imagine that this is a drug that no one knew was this effective and this data is too irrefutable to say otherwise, right? >> yeah. we're excited about the results mainly because of the promise that it provides patients and families that are living with this type of muscular dystrophy.
6:17 pm
there was always a lot of skepticism around genetic-based medicine. there's been a lot of failures. the market wanted to see something that was demonstrative in terms of the level of effect that we showed today. i think that's why it was a speculative stock and i think we were very pleased that we were able to produce a very robust treatment effect and showed the biochemical response of producing the protein we were hoping to produce. >> what i'm doing is holding up a six-minute walk test change from baseline to week 48 which is what people are so enthused about. can you tell us what it means to have a purple line well above a brown line, meaning you have a line that actually shows positive versus a placebo? >> yeah, so the six-minute walk test is the primary outcome measure that is studied to understand the progression of
6:18 pm
ducenne must -- muscular dystrophy patients end up in a wheelchair. we measure their progression by this six-minute walk. we selected a population that we would have expected would have declined over 48 weeks. in fact, the placebo delayed treatment cohort that did decline through 36 weeks was something we expected. and that was a typical sign of this progressive disease. the fact that we showed a stabilization through 36 weeks excited the prospect of this drug. it excited the researchers and clinicians and the advocacy organizations in duchenne. now we've gone a step further. not only did we show stability through 48 weeks but we showed an improvement, as you mentioned. i'll also say the placebo drug
6:19 pm
is now on drug and they're producing the protein. so the best case scenario we were hoping for was a stabilization of the progression in the placebo arm, which is also what we showed, which was very exciting. >> i want to put some caveats in. you tell me why i should be a little less enthused because i obviously was enthused like everybody else today. only 12 people in the study. two people, no good results. only phase 2, we teach on this show, you shouldn't even be thinking until phase 3. this is very rare. how do we extrapolate that small sample and only phase 2 into something that turned the company into a billion-dollar company today? >> well, first i'd say in the rare disease area, it's not an uncommon sample size for a study. if you go back to serazym,e he was approved on 12 patients. the small sample size is not really problematic. it's about the effect size of the drug. and if you have a large enough
6:20 pm
effect size that clearly shows you're doing something and improving the disease, that could be something the fda considers strongly. regarding the two boy, we had two boys in the 30 milligram group that showed rapid signs of progression shortly after they enrolled in the study. this happens with the progressive disease. before the drug had a chance to work in effect and produce the proteins, those boys were already on their way to losing ambulation or basically losing the ability to walk. >> so the earlier the better, get these people on this drug, the earlier the better? >> we think so. our data even support that is idea that the earlier you treat, the younger patients did a little better. the healthier patients based on their baseline six-minute walk did a little better. this suggest that is if the drug were to be approved, the earlier you can start the drug, the better chance you can have to affect the course of this
6:21 pm
disease. >> in the conference call, someone asked -- an analyst asked, are you now open to partnerships? you pointed out if the economics are right, you would engage a potential partnership s. that also what you think made it so that the stock had a sustainable run and didn't give up most of its gains midday? >> we know there's a lot of interest in this program. that will probably increase after today's data. and it is about economics. but it's also about if a partner can come to us and help us outside of north america to accelerate all of the other exxon skipping trugs behind this drug, that could be a win-win for patients, for shareholders. the right thing to do for the program. but we are also preparing to develop these programs ourself. so we're not waiting for a partner and we're not slowing down the program and the progress of our program. >> sir, thank you. this is, again, the greatest one-day gain i've ever seen in
6:22 pm
my career. i want to thank chris garabedian for coming on "mad money." thank you so much, sir. congratulations. >> thank you, jim. >> this is an exercise in why i try to get you in the stock market. $14 stock goes to $45. can your paycheck do that? can a cd do that? can a simple stock do that? no. but a speculation that is well-informed can. mr. garabedian pulled it off. his company did. let's hope this drug really does fulfill the promise for these -- for this very tough illness. stay with cramer. coming up, crucial quarter. vf corp is behind well-known brands such as north face, timberland and nautica. with the holiday shopping season just around the corner, could its stock be the present your portfolio needs? or will high unemployment and a crimped consumer have it cool off? don't miss cramer's exclusive with the ceo just ahead. hi. i'm henry winkler.
6:23 pm
6:24 pm
and i'm here to tell homeowners that are 62 and older about a great way to live a better retirement. it's called a reverse mortgage. [ male announcer ] call right now to receive your free dvd and booklet with no obligation. it answers questions like how a reverse mortgage works, how much you qualify for, the ways to receive your money, and more. plus, when you call now, you'll get this magnifier with l.e.d. light absolutely free. when you call the experts at one reverse mortgage today, you'll learn the benefits of a government-insured reverse mortgage. it will eliminate your monthly mortgage payments
6:25 pm
and give you tax-free cash from the equity in your home. and here's the best part -- you still own your home. take control of your retirement today. ♪ ♪ . last night i talked about how you can't base things on bogus statistic that is use the calendar to give you a false sense of security. tonight i'm going to turn around and recommend a stock based in part on the calendar. have i lost my mind? no. some stocks deserve to do better in a given part of the year. stocks like vf corp, i've told you over and over again to buy it.
6:26 pm
owns a host of terrific brands. jeans like wrangler, lee, all this stuff's in my closet. vf corp has been roaring along with the rest of retail, up 26% year to date. three points off its 52-week high. the company had a very bullish investment meeting in asia last month growing the business from 34% to 45% by 2017. timberland, that turned out to be such a smart deal. they're very good at integrating these acquisitions. of course, we're heading into the winter which is a big deal for the company behind north face. 35% of vf corp's business has winter catalysts. people buy more coats and boots when it's cold out. great products, tremendous earnings power. and they're targeting a higher
6:27 pm
dividend buyout down the road. this stock has given you a 55% gain since we spoke to the ceo in april of 2011. i would not be surprised if there isn't much more room to run. let's check back with eric wiseman, the chairman and ceo of vf corp. mr. wiseman, welcome back to "mad money." >> pleasure to be here. >> good to see you. you have caught a trend that is, i think, maybe the biggest trend going on not just in our nation but i know you've been in china. this is the outdoor trend. >> yeah. >> it is something to be talked about. >> we saw it coming years ago when we decided to invest disproportionately in outdoor. that's half of our sector. it was 10% of our business when we started this journey. but we saw consumers around the world going outdoors.
6:28 pm
and they love brands that help enable that. performance is an important part of that, whether it's on your feet with a great pair of boots or a great pair of socks or with a jacket. it develops an emotional connection with consumers and that is bankable. >> i want to talking about timberland for a second. i had been recommending the stock. people didn't like it. now i know it's just on fire. and it's globally on fire, as are some of the accoutrements. is this because of what vf corp has brought to it or was it an undermanaged brand? why did timberland turn out to be more than what we thought it would be? >> it's still early days for us with timberland. but over half the business is outside the united states when we akird it. they have a strong platform in europe and a growing one in asia. they make great footwear.
6:29 pm
we're going to reboot the apparel program here in the united states beginning next fall in a small way to get started. we think we can help their apparel business a lot. >> you mentioned europe. a lot of short sellers tell me vf corp, they're big in europe. that's a short. there's something transcendent about your brand that makes it so strong. >> our business in europe, it's going to be up low double digits. we're pretty happy with that. >> even howard schultz at starbucks, desperate to get that kind of gain. >> that's not where we have been. but that's where we are. the strength of vf all along is the brands you refer to. we have 30 brands in our portfolio. they are not all working consistently well in each european country, for example. but because we have the portfolio, we can look at opportunities like the north face in germany where we have an incredibly low market share in a country where the people love the outdoors and we can invest
6:30 pm
in that. we're investing in vans in the uk. we have a lot of momentum there. we can't help the unemployment situation in spain. it is what it is. but there are opportunities that we can disproportionately invest and grow our earnings. >> you have a lot of stores. b say i go to macy's to buy my north face jacket. how do you decide when to compete against your customers? >> we try carefully not to open doors right on top of our customers. one of our early earnings -- in mapten, for example, when we opened our first north face store in manhattan, we had -- there was anxiety with our retail customers about that. the brand got stronger in the city and we opened another door the brand still got stronger. there's a tipping point. we have to try to avoid that tipping point. most of our business is as a wholesaler. but we present our brands to consumers in a way no retail partner can.
6:31 pm
if you go into a north face store or van store, you see all the brands together. we think it makes the brand stronger. it's good for us and them. >> one of the things that people get -- don't understand is that the ag complex doesn't all trade up at the same time. some of the food grains did. but cotton has really gotten cheap. you had very high cotton last year. >> yes, we did. >> is this going through gross margins that cotton's come down so much? >> we had real gross margin challenges last year, particularly in our north american denim business. we lost 400 basis points in gross margins last year. >> gigantic. >> it is gigantic. but we didn't cover all of our cotton costs while we were doing that. this year, it's coming back to us. i showed up last quarter a little bit. it's going to show up for the back half of the year with improved growth margins. >> one of the things we're going
6:32 pm
to start hearing is that instead of currency being a headwind, it might be a tailwind. did you calculate 1.28, 1.29 on the euro when you did your low-range forecast months ago? >> our last guidance to the street, we told them we were looking at the balance of the euro at 1.22. we were at 1.30. came down to 1.25. we've moved around a little bit this year. but i can't predict where the euro is going to be. but we're in a good spot for the rest of the year. >> i'm tired of hearing how dead the u.s. consumer is. judging by the numbers i see, the u.s. consumer is anything but dead. >> consumers are incredibly resilient. if you bring them great products and you present them in a meaningful way to them, they'll buy them. when consumers -- they never go away. sometimes they slow down. we just have to eat more our fair share of the pie when that happens. >> retail guy is asking me, would you ever split the stock? >> not going to comment on that.
6:33 pm
easier to ask you if you're going to buy deckers. >> next question? >> i have to try. unbelievable stock we've been recommending for years. thank you so much. eric wiseman, chairman, president and ceo of vf corp. why i like the stock market so much, i love the brands. you love the company, you love the management. sometimes it is that easy. stay with cramer. thank you. coming up, are you ready to get charged up? cramer cranks up the voltage and goes electric on an all new hyperactive "lightning round." if we want to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools
6:34 pm
like investing in advanced teacher education. let's build a strong foundation. let's invest in our teachers so they can inspire our students. let's solve this. ♪ ♪ ♪ [ male announcer ] introducing a look twice. introducing a stunning work of technology -- the entirely new lexus es. and the first-ever es hybrid. this is the pursuit of perfection.
6:35 pm
6:36 pm
it is time. it is time for the lightning round on cramer's "mad money." when you hear this sound -- [ buzzer ] -- then the lightning round is over. are you ready, skee-daddy? that, ladies and gentlemen, is the conclusion of the lightning round. [ buzzer ] keith in colorado. >> caller: what should we do with our deep in the money calls for crm? go packers.
6:37 pm
>> thank you for subscribing and being a part of the club where i am on the board., after the oracle conference, i feel better about continue on the calls. sell some $165. ed in massachusetts. ed? >> caller: big boo-yah to you, cramer! >> boo-yah back at you. >> caller: jim, i want to thank you first for advice in my i.r.a. do you still by wm? >> yes. you're being paid to wait. it was described that without increasing amount of construction work, waste management -- he believed would not be able to deliver the
6:38 pm
numbers. it's a major user of waste management. i have to go with his analysis. scott in texas. scott? >> caller: boo-yah, jim. calling from houston, home of the undefeated houston texans and only truly professional football team in the state. is this a buy and do you think the mlp distributions will be taxed if the tax credits expire in 2013? >> i'm going to take them backwards. i think the tax credit is going to be fine. enterprise partners is terrific. and i'm torn playing hernandez. let's go to vince in california. vince? >> caller: boo-yah, cramer. >> boo-yah. >> caller: talk to me about uhn? >> i have to tell you, i believe
6:39 pm
in this company. i think it's one of the best. i also want to reiterate that i think that the health care reits represent the best value right now in the real estate investment trust group. may i just mention one second, hcn, i think that stock is still cheap at $59. i want to go to jack in pennsylvania. jack? >> caller: good afternoon, jim. this is jack from bucks county, pennsylvania, calling. i'm interested in wprt, westport innovations. i bought it maybe six months ago and have seen it go from approximately $18 to $50, back down to the high 20s or so. >> speculative situation. recommended today by a major firm. this is a company that makes natural gas engines for trucks and railroads. i believe in the company. but it's highly speculative.
6:40 pm
let's go to dino in florida. >> caller: this is dino from florida. >> what's shaking? let's go to work? >> caller: i've been watching your show for a long time and made a lot of money because of you. cisco was $17. if it goes to $19, pull the plug? >> two firms said this week the business is very strong. i think the stock can go to $21 and not have a valuation stretch. let's go to mike in pennsylvania. mike? >> caller: yes. >> you're up. >> caller: mike from philadelphia. >> huh? >> caller: i'm from drexel hill. >> you are? >> caller: i was just worried
6:41 pm
about dis? >> disney remains a buy. taking one more. mark in illinois. mark? >> caller: jim. >> go ahead, mark. >> caller: i was wondering about stillwater mine. >> don't care for it. we like the gld. full disclosure, disney, we sold the disney alerts with the idea it would be not that great a quarter. that may be wrong. do want to buy it back. and that is the conclusion of the "lightning round." >> announcer: the lightning round is sponsored by td ameritrade. coming up, how do your stocks stack up in this mystifying market? cramer makes sure your portfolio makes the grade on "am i diversified?" . with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin.
6:42 pm
trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account. trade commission-free for 60 days, mike rowe here at a ford tell me fiona, who's having a big tire event? your ford dealer. who has 11 major brands to choose from? your ford dealer. who's offering a rebate? your ford dealer. who has the low price tire guarantee... affording peace of mind to anyone who might be in the market for a new set of tires? your ford dealer. i'm beginning to sense a pattern. buy four select tires, get a $60 rebate. use the ford service credit credit card, get $60 more. that's up to $120. where did you get that sweater vest? your ford dealer. we don't let frequent heartburn come between us and what we love. so if you're one of them people who gets heartburn and then treats day after day... block the acid with prilosec otc and don't get heartburn in the first place! [ male announcer ] one pill each morning. 24 hours. zero heartburn. zagat just gave hertz its top rating in 15 categories,
6:43 pm
including best overall car rental. so elevate your next car rental experience with the best. it's just another way you'll be traveling at the speed of hertz. [ male announcer ] how do you turn an entrepreneur's dream... ♪ into a scooter that talks to the cloud? ♪ or make 70,000 trades a second... ♪ reach one customer at a time? ♪ how do you help doctors turn billions of bytes of shared information... ♪ into a fifth anniversary of remission? ♪ or turn 30-million artifacts... ♪
6:44 pm
into a high-tech masterpiece? ♪ whatever your business challenge, dell has the technology and services to help you solve it. taking control of your financial destiny is smart. but why would you go it alone? >> something has a much larger bearing on you and the stock market as a whole. >> let cramer be your guide, your soundingboard. >> i'm having a hard time with my favorite stock. >> i know you can beat these professionals. >> and your coach on the road to financial independence.
6:45 pm
"mad money," weeknights on cnbc. big night on cnbc, not just because it's the first debate for romney and obama. it's because here on "mad money," it's wednesday. what do we play on wednesdays? you've got it. time to see about your pofrls. time to play ffd ffd. time to play "am i diversified?." we've gotten inundated with tweets. we have to go to them. this is from dimas 720. m mo,, pep, point guard, cop, nyb. i'm saying it's highly unlikely.
6:46 pm
procter & gamble, uh-oh, pepsi, consumer products company. altria, conoco phillips, new york community, high-yielding financial. keep altria. between pepsi and procter, keep pepsi. we're going to put in a health care company. at this point i'm going a little aggressive. go celgene. let's go to ed in new york, please. ed? >> caller: hey. >> hey. modern portfolio. it's a modern portfolio. i have popeye's. i love the red beans and rice. aig is my favorite financial.
6:47 pm
michael kors is the terrific apparel company where they still charge $200 even at the outlets. dynavax. and facebook is not doing as badly as everybody else. internet company, financial, apparel company, biotech and we've got a restaurant, i say, bingo! deloris in new york. deloris? >> caller: hi, jim. boo-yah to you. >> i'll be there this weekend. clinton hill is coming back. go ahead. >> caller: we love you, jim. you do so much for us. >> thank you. >> caller: i want to know if i'm diversified. my first stock is target, second is sirius xm, third is clorox,
6:48 pm
fourth is disney and last is johnson & johnson. >> all right. let me go to work. the classic final station, 26 can't be beaten. sirius is entertainment. disney -- let's call it radio. that would conflict with disney. that's true entertainment. johnson & johnson, pharma. target one of the best retailers in the world. and clorox -- too much like johnson & johnson. this is tough. we are going to get rid of clorox and bring a little industrial in there. why don't we put in, yes, i don't mind saying it, ge, since it's one of the biggest positions in -- or you can do 3m. let's go to sandy in ohio. >> caller: boo-yah to you. calling to see if i am diversified. >> okay. >> caller: i've stocks are emc,
6:49 pm
procter & gamble, bristol-myers, conagra and votofone. >> high-yielding telco from europe. bristol-myers. conagra, what a terrific quarter they delivered. emc, tech. procter, we'll say procter is not food because they've gotten rid of food. we're going to make this food, we're going to make this consumer products. this is drugs. this is telco, this is tech. and therefore we've got a terrifically diversified portfolio. well-played everyone. stay with cramer. coming up, tech torture. hp got slammed today after cutting guidance. what drastic action could save this tech laggard and help you
6:50 pm
cash in? get cramer's take. humans -- sometimes life trips us up.
6:51 pm
and sometimes, we trip ourselves up, but that's okay. at liberty mutual insurance we can "untrip" you as you go through your life with personalized policies and discounts when you need them most. just call... and speak with a licensed representative about saving on your policy when you get married, move into a new house... [crash!] or add a car to your policy. don't forget to ask about saving up to 10% when you combine your auto and home insurance with liberty mutual. security, coverage, and savings. all the things humans need to make our beautifully imperfect world a little less imperfect. call... and lock in your rate for 12 months. liberty mutual insurance. responsibility. what's your policy?
6:52 pm
6:53 pm
. as horrible as it was -- and it was a real stinker -- i didn't really care about what ceo meg whitman had to say today about hewlett-packard. it was driven down from $17 to under $15. that's a 13% decline. the only thing to move the needle up for this dog which i have told you endlessly to sell, would be a merger with dell to take out the excess capacity. and maybe actually meet its forecast. that combination would at least start to rationalize an industry with way too much combination and allow the company to focus on more value-added businesses. of course, hewlett-packard won't merge with dell. the personalities are too
6:54 pm
different. this isn't like when a leaderless compaq merged with dell a few years ago. some would say you'd be putting two drunken sailors together to hold each other up in the same boat. far better what ibm did with its personal computer division -- get rid of it! i just don't know if there would be enough left at hewlett-packard if they split the pc business off. they thought about that. there may be no there there. in truth, hewlett-packard and dell remind me of two value traps. tech value traps. people get betting on them into the ground. there was no saving digital equipment investors. they lost everything. apple took aim at the open system that microsoft propagated
6:55 pm
opting for a closed system to be controlled by one man, steve jobs. one look at the market capitalizations shows the wisdom of jobs' position. more important for this matter is the fact that microsoft's customers ended up in a business that reminds me of the uncoded free sheet paper business, the commodity where there can be no value added. yes, they, the customers, the dells and hewlett-packards, are the true losers of the bill gates movement. hewlett-packard isn't just personal computing but it's printing and consulting. i loathe the printers. as far as consulting goes, take a look how well their competitors are doing. the companies i work for, i pray they see the light and go apple.
6:56 pm
hewlett-packard is a huge company with quite a hold on the tech budgets of big corporations. but the company will eventually will ripped out of the enterprise. you can't have something that young people hate prevail forever. funny thing, younger people, they get older. and they take the reins from the relics who jammed dell and hewlett-packards down our throats. so good luck to the new team at hewlett-packard. you've been dealt one terrible hand. i don't see a way to improve it in time to win for the shareholders or to win any way at all. stick with cramer. if we wantnt to improve our schools... ...what should we invest in? maybe new buildings? what about updated equipment? they can help, but recent research shows... ...nothing transforms schools like investing in advanced teacher education. let's build a strong foundation.
6:57 pm
let's invest in our teachers so they can inspire our students. let's solve this.
6:58 pm
why they're always there to talk. i love you, james. don't you love me? i'm a robot. i know. i know you're a robot! but there's more in you than just circuits and wires! uhhh. (cries) a machine can't give you what a person can.
6:59 pm
that's why ally has knowledgeable people there for you, night and day. ally bank. your money needs an ally. seconds away on "the kudlow report." 60 million americans may watch the romney/obama debate. 60 million, and it's going to be a choice between free enterprise and big government planning. who will win? by the way, riot police in iran quell black market currency traders rioting over the course of the real. did you know the s&p 500 is up 32% over the past year? it goes back to october 3rd of 2011. why is that? we'll tell you later. "the kudlow report" is just moments away. did apple bottom? i will say this, the chart indicates it did. and now the discussion is talking


info Stream Only

Uploaded by TV Archive on